[oilyfan]

Interesting article about handset subsidies:

http://www.montrealgazette.com/busin...372/story.html

The new iPhone is rumoured to be coming out next week, and it’s expected to carry a price tag of up to $850.

If that seems like a hefty bill for a phone, it may surprise you to learn that most high-end smartphones retail for about that price.

But almost no one pays such exorbitant rates. Instead, Canadians often pay about $100 to $300 for a typical smartphone, and if they want an older model, the phone is free. The balance is absorbed by the cellphone providers.

“Many Americans don’t realize the actual cost of the phones they’re purchasing with a two-year contract, because the cost of that phone is included in the cost of their data plan and the fees associated with their contract,” he said. “We’ve also unwittingly created a disposal marketplace for some pretty amazing products.”

Surtees said he believes subsidies will eventually be phased out, though it might be over a long period of time, like 10 years.